Investors following the news this year have heard plenty about gold.and ongoing economic woes have led to consider investing in the precious metal for the first time.
But all the headlines can be overwhelming for investors. Some days the price is up, some days it's down and some days, it reaches near-historic levels. How do you know when you should invest? In this piece, we'll look at current gold prices, where the trends seem to be going and whether it should impact your decision to invest.
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How much is gold per ounce?
The spot price of gold — how much gold is trading for — was $1,974.35 per ounce as of June 1, 2023, according to the World Gold Council. That's in keeping with its performance over the past several months as investors continue to turn toward to protect their money from persistent economic uncertainty.
In mid-April 2023, the spot price reached $2,048, close to the all-time high of $2,067 set in August 2020. Whileslightly since they've still hovered around the $2,000 mark. And many believe prices will hold steady — if not rise further — in the coming months.
What does this mean for your gold investing plans? Not as much as you might think.
Why gold is a good investment, whatever the price
While it's interesting to watch gold price trends and speculate on what the future holds, gold isn't meant to be a get-rich-quick scheme, purchased quickly and offloaded just as fast for big profits. Instead, gold's value lies in its ability to ride out market fluctuations over the.
Specifically, gold's benefits include:
- Hedge against inflation: is an inherent part of the economic cycle. While assets like cash and stocks decrease in value during inflationary periods, gold prices tend to rise. This can help preserve your purchasing power.
- Solid performance during market turmoil: When the market is turbulent, . It's not subject to the wild fluctuations stocks are, and it isn't devalued by economic forces the way the dollar is. As a result, it can help you weather the natural ups and downs of the market.
- Diversification: Because it's inversely correlated with riskier assets, gold can from losses when these assets lose value. For this reason, experts advise keeping 5% to 10% of your portfolio in gold.
- Liquidity: Should you find yourself in a pinch and in need of extra funds, gold is a . You can exchange it for cash easily, which can be particularly useful when inflation drives the dollar's value down but gold's price up.
So, don't get caught up in wondering how to "time the market." No matter, you'll generally enjoy reliable returns and protection from losses if you hold onto it for the long run.
The bottom line
This year's high gold prices have brought this asset to the attention of people who may not have otherwise considered it. However, the current price of gold is only one thing to take into account when deciding whether to invest. Gold offersfor your portfolio, which you can enjoy over the long term regardless of what the price of gold is when you buy it.
While you can certainly maximize your return by, don't let that prevent you from investing if prices are high. By holding gold as a long-term investment, you can reap the benefits, whatever prices are in the short term.
To learn more about your gold investing options, request a free investors kit today.
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